Image Resources NL (ASX:IMA) Reports Significant Progress on Atlas Project
Atlas Project Developments
Image Resources NL (ASX:IMA) has reported substantial advancements in the construction of the Atlas Project. The completion of the Groundwater Operating Strategy and the acquisition of water licences in October 2024 played a crucial role in facilitating the ongoing construction. Despite setbacks in November due to bushfires that affected the Dandaragan region, the project remains on schedule for commissioning and the first heavy mineral concentrate (HMC) production, with expectations set for the first quarter of 2025.
Construction activities have progressed significantly, including the relocation and assembly of equipment from the Boonanarring site. By the end of December 2024, most major equipment necessary for HMC production had been installed or was on site.
Financial Highlights
The company secured a US$20 million HMC Offtake Prepayment Facility with Shantou Natfort Zirconium and Titanium Co., Ltd. This agreement, which has already started contributing to the cashflow with a US$5 million drawdown in December, will ensure the Atlas Project is fully funded to its first revenue expected in the second quarter of 2025. At the close of December, Image Resources reported a cash position of A$19.95 million, complemented by an additional A$24 million received in early January 2025.
Cash Flow and Corporate Activity
For the quarter ending December 2024, Image Resources experienced a net cash outflow of A$9.8 million, primarily due to capital expenditures related to the Atlas Project. The closing cash balance reflects ongoing investment in project development and operational expenditures. Additionally, the annual Sustainability Report for CY2023 has been published, reaffirming the company’s commitment to environmental stewardship and community engagement.
With construction activities at Atlas advancing steadily, Image is poised for a milestone year in CY2025. The company anticipates generating positive cash flow and fulfilling its financial obligations through ongoing HMC deliveries.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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